TMI Blog2020 (7) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... oth are identified. AO could have verified the land documents whether it stands in the name of the donors or not and whether same has been donated by them to the trust or not. This factor could also been verified by examining the existence of the trust properties and activities carried on it. The assessee could also have shown the documents of the land in the name of both the donors and how the same has been executed /transferred in the name of the above trust. Similar is the situation with respect to the plant and machinery - As this information has not been verified by the AO, this ground of appeal with respect to the addition is set aside to the file of the learned assessing officer with a direction to the assessee to show the existence of the land in the name of the donors and same is used by the trust for its activities. The assessee is directed to produce the relevant evidence before the assessing officer along with the necessary explanation which may be considered by the learned assessing officer and issue may be decided afresh. Accordingly, this issue is allowed with above direction. Addition in the hands of the assessee trust as anonymous donation - fact shows th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be reversed. In the result, ground relating to the addition as anonymous donation is allowed. - ITA No 10/Del/2017 - - - Dated:- 13-5-2020 - Shri Sudhanshu Srivastava, Judicial Member And Shri Prashant Maharishi, Accountant Member ORDER PER PRASHANT MAHARISHI, A.M.: 01 This appeal is filed by the assessee, trust, against the order of The Commissioner Of Income Tax (Appeals), [ The ld CIT - A] by order dated 22/2/2019 in appeal filed by the assessee against the order passed by The Income Tax Officer (Exemption), Dehradun [ The ld AO] under section 143 (3) of The Income Tax Act 1961 [ The Act] for assessment year 2013 14 dated 14 March 2016 , wherein the appeal of the assessee is partly allowed. 02 The assessee is a charitable trust formed as per trust deed dated 9/7/2009 with an initial contribution of ₹ 1000. The assessee filed return of income. However on perusal of the balance sheet of assessee, the learned assessing officer noted that assessee has introduced capital fund of ₹ 2279062/ , assessee was asked to explain the above introduction of capital. Assessee could not explain the credit entry of the introduction of the capital fund, hence th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unger generation for the purpose of self-employment and business of pestcidies in agricultural activities. Thus it was formed to create awareness among the farmers in rural areas about the agricultural activities including water conservation, land conservation and pollution free environment. In order to achieve this objects of the trust, so that they do not migrate to cities in search of employment, one Shri Kartar Singh, who is also the secretary of the trust and along with his brother, who is also the member of the trust board, contributed their belongings such as land and building and other fixed assets valued at ₹ 2278062/ to the trust that helps in producing the organic agricultural products. The fixed assets was a building constructed by the trustees on land area of 6.75 bighas owned by both of them. Such land along with the building was estimated at a market price of ₹ 15 lakhs along with certain other assets amounting to ₹ 7 78062/ was contributed by them to the appellant trust. Thus, in the books of the trust, the additions of the fixed assets was shown and consequently the above amount was disclosed as introduction of capital fund. The learned AO made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned assessing officer with a direction to the assessee to show the existence of the land in the name of the donors and same is used by the trust for its activities. The assessee is directed to produce the relevant evidence before the assessing officer along with the necessary explanation which may be considered by the learned assessing officer and issue may be decided afresh. Accordingly, this issue is allowed with above direction. 06 With respect to the second addition of ₹ 15 lakhs where the AO has made the addition in the hands of the assessee trust as anonymous donation, the fact shows that assessee has shown the name and addresses of the donors. The assessee has also produced them before the assessing officer. The learned AO made the addition for the only reason that summons were issued to those donors but those summons could not be served and returned back to the AO. The learned CIT A also confirmed the addition stating that assessee failed to show proper evidences on record during the assessment and remand proceedings. However the learned CIT A asked the learned AO to grant relief with respect to the donors who were verified by the assessing officer. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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